Landis Rath & Cobb LLP is a premier boutique law firm concentrating on commercial bankruptcy, corporate restructuring and business litigation. We provide sophisticated legal advice and services to national, international and local clients in and out of federal and state courts. Our proven record of success is backed by a commitment to advocate for our clients' interests with personalized service and expert counsel.

RBC filed the motion to sever and transfer in an adversary proceeding that the Trustee asserted against sixteen other defendants relating to claims arising from a complex and lengthy series of events, including a failed sale process and failed mergers that ultimately led to Landauer-Metropolitan, Inc.’s bankruptcy. The adversary proceeding involves eighteen separate claims – including against controlling shareholders, directors, and officers – for breaches of fiduciary duties, intentional and constructive fraud, breach of contract, recharacterization, subordination of debt, aiding and abetting breaches of fiduciary duties, and preferential transfers. RBC had been retained by the debtors in connection with the unsuccessful pre-petition marketing process to sell the company. RBC moved to sever and transfer the aiding and abetting and breach of contract claims against it based on a forum selection clause in its engagement letter. But Judge Sontchi agreed with the Trustee’s opposition, which distinguished the Supreme Court’s recent Atlantic Marine opinion, and held that severance and transfer is not warranted in this case because it would waste judicial resources, risk prejudice to the other defendants, and risk inconsistent and conflicting adjudications. Accordingly, the Court denied RBC’s motion in its entirety.